[Eddie Philips]

Thank you for highlighting the challenges faced by SMEs. It’s essential to acknowledge these obstacles and work towards overcoming them to ensure the continued growth and success of small and medium-sized enterprises. Your insights are much appreciated!

[Eddie Philips]

While the potential benefits of investing in an IPO stock are certainly alluring, there are some key drawbacks that should give investors pause. For one, the hype and buzz surrounding the IPO can artificially inflate the stock price, creating a valuation that is not supported by the company’s actual financial performance. This can lead to a bubble that ultimately bursts, resulting in significant losses for investors who bought in at the peak.

Additionally, IPO stocks often come with a lock-up period, during which early investors and insiders are prohibited from selling their shares. Once the lock-up period ends, these investors may flood the market with shares, driving down the stock price and causing losses for other investors.

Another potential drawback of investing in an IPO stock is the lack of transparency and information available about the company. As a new public company, the company may not have a long track record of financial performance or be required to disclose as much information as an established public company. This can make it difficult for investors to accurately assess the company’s financial health and make informed investment decisions.

In conclusion, while investing in an IPO stock can be tempting, investors should weigh the potential benefits against the significant risks and drawbacks. It’s important to carefully research the company and consider the potential for hype and overvaluation, as well as the possibility of insider selling and limited transparency.

• This reply was modified 1 year, 9 months ago by Carin G Hansen.

[Eddie Philips]

Grey listing means that FATF has increased a country under closer monitoring to see how well it is doing against money laundering and funding for terrorism. People also call the “grey list” the “increased monitoring list”. When the FATF puts a country under increased monitoring, it means that the country has agreed to fix any strategic problems quickly and within the timeframes set by the FATF. The country is then subject to more monitoring. This FATF grey list is made up of the countries that are thought to be safe havens for funding terrorism and laundering money.

This is a warning to the country that if they don’t resolve their problems, they could end up on the blacklist.

[Eddie Philips]

With this bill, it will be easier, cheaper, faster, and safer for businesses to trade with other countries right away. The main good benefits about the Bill are:

1. Increasing efficiency and lowering costs of trade administration because processing electronic documents is faster and cheaper than paper ones,

2. Making trade safer and more legal by taking advantage of the transparency and traceability of electronic documents.

3. Getting environmental benefits from less paper use and fewer emissions from couriers.

Putting these benefits into numbers, the Digital Container Shipping Association (DCSA) says that if 50% of the container shipping industry switched to electronic bills of lading, the world would save around £3 billion. Most people who took part in a Law Commission survey said they thought transaction costs would go down by at least 5%. According to CargoX, as reported by Trade Finance Global, it can take seven to ten days to transfer a paper trade document, but processing the document electronically can reduce this time down to as little as 20 seconds. When it comes to the environment, the World Economic Forum thinks that this could cut global carbon emissions from logistics by as much as 10 to 12 percent.

[Eddie Philips]

STF (Structured Trade Finance is typically used in emerging markets and cross-border transactions. It is used for high-value transactions between bilateral partners. Lenders use STF to mitigate risks as it is possible to customize loans at various supply chain points. Lenders are assisted by STF while trying to protect the price volatility, supply shocks and demand changes. STF poses a reduced risk for lenders as it is self-liquidating.

Meanwhile, when you look from the point of view of the borrowers. STF works best in small businesses as the strength of the borrower is compared with the loan amount. STF offers a better security mechanism wherein every supply chain point is assisted with funds. This means that funding can be scaled up effortlessly whenever necessary for borrowers due to the flexibility of STF, and the payment periods can be extended. For lenders, it can reduce the exposure to commodity risks and prices.

[Eddie Philips]

The five basic payment methods are:

1.Collections
2.Open Account
3.Consignment
4.Cash in Advance
5.Letter of Credit (LC)

Out of the five, cash in advance is considered the safest payment method for international trade. Cash in advance eliminates the risk of non-payment and credits as the seller is paid the total amount beforehand. Bank wire transfers or credit card payments are the frequently used payment modes when using the cash-in-advance option.

[Eddie Philips]

Any commercial bank offers various services to businesses, capital markets and individuals. It is a financial institution where banking for international trade takes place frequently. However, contracts may be difficult to enforce in a few countries. A bank’s role in any international trade is to offer letters of credit to reduce risks and permit transactions to happen without hassle for sellers and buyers worldwide. The commercial bank is a neutral third party in most circumstances where it does not provide a letter of credit.

[Eddie Philips]

When the laws of different countries that apply to a certain legal matter are different, this is called a “conflict of law.” In these situations, the parties have to determine a choice of law to figure out which law applies.

This happens when a financial transaction takes place across international borders. Then, the parties must agree on a law that will apply to the related financial agreement. Since there is no one international law that applies to all transnational relationships, the international contract will be governed by the national legal system chosen by the parties. In other words, the chosen law shows what the parties have decided should be the law that applies to their agreement. This choice of law is very important for the parties because it will affect how the clauses of the agreement are interpreted and what their rights and obligations are. In the same way, the parties will have to determine where any disputes will be settled if they come up.

[Eddie Philips]

Becoming a blockchain developer involves more than knowing how to code a blockchain application. It involves understanding how decentralisation really works and what the different consensus algorithms mean.

The quickest way to become a blockchain developer is:

1. Study NodeJS (it is basically Javascript)
2. Learn to be strong
3. Find out how to use the Truffle Framework.
4. This will help you get started as a blockchain developer quickly.

[Eddie Philips]

MOOCs are online courses that are open to a lot of people. Online courses are offered by a lot of well-known schools. Most of them are free. Check out Coursera, Edx, and other websites.
2. Websites for learning: Khan Academy and Investopedia are great places to learn about almost anything online.
Google “”baba””: Pick a subject and look it up on Google. You would get even better results than you can think of.
Books: Get a couple of good books and read them. You would learn about new things. If you are really serious, try reading some college-level books.
4. Newspapers: Read financial newspapers and watch business channels.
5. Business magazines: Read at least one magazine in addition to the newspaper every day.

Right now, I can only think of these. I’m sure there are lots of other ways to learn as well.

We hope it helps.

[Eddie Philips]

The association of chartered certified accountants was founded in 1904 and offers a professional certification that is respected all over the world. In the accounting world, the ACCA has a great reputation. Students who finish the course can have successful careers in many fields around the world.

In the ACCA course, students go through a lot of training and learn both theoretical and practical skills. They learn about professional skills and tools that help them move forward in their careers. When the programme is over, the students are ready to work as accountants.

The ACCA certificate is the standard for accounting excellence all over the world. It gives you the chance to work in more than 180 countries. Yes, an ACCA accountant in India could work anywhere in the world without having to reapply for certification. Countries like the US, UK, Australia, and Singapore prefer accountants who are certified by the ACCA.

[Eddie Philips]

Trade finance is a service that both exporters and importers can use in many ways. Money launderers try to look at the movement of funds as little as possible. The risks of committing a financial crime related to trading are pretty high.

Documentary credit is mostly useful for moving money into and out of countries that have restrictions on exports and imports and need proof that the goods actually entered or left the country. Banks should handle these transactions according to a standard set of rules that includes making sure that the documents involved meet the terms of the letter of credit. Even though Documentary Collections don’t have to be checked by the bank, they will still need consistent documents as a cover for the ever-present Sanctions and increasing Anti-Money Laundering checks. The product that comes with the most risk is cash payments that support trading on an open account.

The Finance Corporation (FI) trade finance is the item with the second-highest risk rating. The FATF, Wolfsberg, and JMLSG have put the financial crime risks in trade finance into two main groups: money laundering/terrorist financing (including fraud) and sanctions/proliferation financing. Money Laundering and Terrorist Financing are important for criminal groups to get the most out of money they got illegally. Sanctions/Proliferation Financing could include the trade of drugs, the smuggling of weapons and other goods, fraud, kidnapping, and extortion.

[Eddie Philips]

You need to contact a trade finance company if you want to start a business. A business owner’s most common question is, “Why should I contact them?” Here are some reasons:

– Get better repayment terms.

– Safer and faster customer payments.

– Reduce Risk.

When your company has a chance to get into a new market or meet its market share, don’t let payment terms get in the way. Trade finance companies put up the money that export companies need to meet even the demanding terms. When you work with a trade finance company, you get the buying power you need to take advantage of opportunities, and the trade finance company gives you good terms for paying back the repayment.

When customers ask for long payment terms or when the competitive landscape says so, trade finance can free up working capital that is tied up in the transaction. Trade finance companies take over the payment process from your customers and manage it for you, while giving your company cash right away.

If your company is looking for a centralised way to reduce and almost completely get rid of trade risk, you might want to hire a trade finance company.

[Eddie Philips]

The electronic B/L does the same things, but it also makes information faster, more secure, and more accurate.

In the past, important information was sent from the shippers to the consignees in a different country by sending a physical Bill of Lading. Using an eB/L, the information on the Bill of Lading can be sent almost instantly to other people in the supply chain. The administrative and operational costs of all parties involved will go down if they switch from a completely manual, paper-based process to one that uses an electronic interface to capture the information and send it instantly to the right people. In the end, these time and cost savings will reduce the cost of products and shipping, which will reduce the cost for end consumers.

• This reply was modified 2 years, 1 month ago by Carin G Hansen.
• This reply was modified 2 years, 1 month ago by Carin G Hansen.
• This reply was modified 1 year, 10 months ago by Carin G Hansen.

[Eddie Philips]

An open account transaction is a sale where the shipped goods are delivered before the payment is due. It is advantageous to importers as they experience a good cash flow. But it is a great risk for exporters. The competition in exports make buyers pressure the exporters for open account transaction, and it is prevalent abroad to extend the seller’s credit to the buyer. Usually, exporters who do not want to risk extending credits lose their customers to competitors. But exporters can provide a competitive open account by mitigating non-payment risks and using export credit insurance.

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